BRUSSELS (Reuters) - Japan is in talks with the Czech
Republic to buy surplus carbon emissions rights, following
similar discussions with Russia, Poland and Hungary, a Japanese
government source said on Monday.

The rights, known as Assigned Amount Units (AAUs), are sold
by countries like Russia that are well below the greenhouse gas
emissions limits assigned to them under the Kyoto Protocol
agreement during 2008-12.

The other 36 industrialized countries that have signed up
to Kyoto can buy the AAU emission rights if they have exceeded
their own quotas.

"A memorandum has been done with Hungary, but it's ongoing
with Poland and Czech (Republic)," said the source.

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By buying AAUs, countries can avoid the cost of reducing
emissions at home.

This trade has drawn criticism from environmentalists who
say the rights are not necessarily related to actual emissions
cuts.

Russia is one of the world's biggest potential sources of
AAUs, with a bigger surplus than the shortages of all other
Kyoto countries combined.

Talks between Russia and Japan are ongoing, but are moving
slowly, added the source.